LOAN TO BRITAIN

Gisborne Herald, Volume LXXIII, Issue 21946, 14 February 1946, Page 7

LOAN TO BRITAIN

BENEFICIAL TO U.S. LOWERING OF TARIFFS MR. BYRNES’ ANALYSIS WASHINGTON, Feb. 12. The projected loan to Britain would provide tangible and firm gains for the United States and the rest of the world, by which American would gain a chance for expanding world trade, and an opportunity for goods and money to be flown where they may be used for a prosperous world instead of a lean world, said the Secretary of State. Mr. James Byrnes, addressing the Foreign Policy Association.

Mr Byrnes said he believed the most significant American benefits would come from the pledge to support the United States trade goals contained in the British White Paper which calls for a collective assault by. the United Nations on all trade barriers to promote the freer flow of goods in world commerce. “Economic Allies” “Bv this commitment the British take their place at our side as economic allies and not as economic enemies,” Mr. Byrnes concluded. It Congress approves of the loan, the United States can expect, first, a general reduction in tariffs and the elimination of trade preferences; secondly, fewer quotas, embargoes and Government subsidies; thirdly, the loosing o the grip of cartels and combines upon world commerce, and fourthly, the progressive elimination of export restrictions and price-fixing arrangements. Mr. Byrnes denied that the loan to Britain ' would require the United States to extend loans to other Governments.

Mr. Byrnes said that he frequently heard two objections: First, that it would contribute to inflation in the United States and secondly, the loan would not be repaid. Objection To Loan Answered Mr Byrnes, referring to the first objection, said that Britain would draw gradually on the funds and not spend them for scarce consumer goods but for food and basic raw materials,. some of which were in surplus supply in the United States. Discussing the second objection, Mr Byrnes • said the circumstances were entirely different from those of the first World War loan, That loan was bigger and the interest higher, ft was ■"'irred for materials used up during the war and the British were forced to attemot payment in face of three successive American tariff increases Even then Britain made payments until the depths of the depression. This time the United States and the other nations were taking active steps to prevent a rendition of the depression. If those efforts failed, they would lose much greater values than the instalments on that credit